2006

ORACLE’S COMMITMENT
Table of contents

Welcome to Oracle’s Commitment 1

About Oracle 2

Oracle in Action 4

Oracle in the Community 8

Oracle’s Global Workforce 14

Oracle and Privacy 20

Governance 22

Oracle and the Environment 26

Oracle and Energy Management 30

Q&A with Oracle President Safra Catz 32

 welcome
to oracle’s commitment

Oracle has a long history of employee volunteerism, charitable giving,

respect for the environment, and a strong commitment to improving
education. But we have never taken the step of recording our efforts
for the benefit of our employees, shareholders, customers, and policy
makers around the world—that is, until now.

We are committed We are proud that the same innovative spirit behind Oracle’s technological
to using our technology success also drives innovative solutions and programs for the benefit of
and resources to advance our communities. Programs such as ThinkQuest, our global competition for
students to create educational Web sites and thereby build understanding
education in innovative
across cultures, and Oracle Academy, which works in partnership
ways, promote diversity,
with secondary schools to educate students, are just two examples of
enrich the life of com- our creative efforts.
munities, and protect
I would like to take this opportunity to thank our employees for their
the environment.
generosity and their sense of volunteerism. Without them, none of this
would be possible. Whether it is by responding to major international
tragedies such as the Tsunami or by helping out at the local homeless
shelter, our employees’ actions are a source of pride for Oracle.

With continued hard work, we intend to maintain our reputation as

an innovative leader in our industry, as we continue our commitment
to good corporate citizenship. I welcome your feedback to this report
at commitment_ww@oracle.com.

Safra A. Catz
President, Oracle


 about oracle
O r a c l e Co r p o r at i o n At a G l a n c e Oracle’s business is information—
how to manage it, use it, share it,
and protect it. For nearly three
Chief Executive Officer
Lawrence J. Ellison decades, Oracle, the world’s largest
Business enterprise software company, has
Data/Enterprise Management Software helped governments and businesses
Annual Revenue
around the world drive their enterprises
US$14 billion
Employees based on quality, real-time information.
Approximately 55,000 Oracle is helping enterprises use high-
Countries of Operation quality information to collaborate,
More than 79
Headquarters measure results, and generate a single
Redwood Shores, California, United States view of critical business data.
The success of our products and
services is based on three principles:
• Simplify – Enterprises must increase
the speed of information delivery
with integrated systems.

• Standardize – Enterprises must
reduce cost and maintenance with
open, easily available technology.
• Automate – Enterprises must
improve operational efficiency with
technology and best practices.
Throughout the company’s history,
Oracle has pursued a position of
leadership in the technology industry.
In the course of that pursuit, the
company and its employees have
committed to high standards—
in daily business and in the policies
set forth by the organization.
This report is a reflection of that
commitment to excellence.
 O r a c l e P r o d u c t s a n d S e r v i c e s

The Oracle Database – Oracle was founded on the concept of an enterprise-strength

relational database—software that allows businesses to store and access immense
amounts of data. For example, Costa Rica’s National Biodiversity Institute (INBio) uses mehsana district cooperative milk
the Oracle Database to gather data about the country’s biological diversity and generate
producers union
information that promotes sustainable use.

Oracle Applications – Oracle’s Applications products help businesses input, manipulate,

and view business data based on job role or business processes. For example, the The Mehsana District Cooperative Milk
U.S.-based National Aeronautics and Space Administration’s Jet Propulsion Laboratory
uses Oracle Applications to automate business processes, reduce operational costs, and Producers Union doesn’t only deliver
reinvest savings into space exploration projects. nutritious food to the tables of urban
Indians. It also ensures that farmers
Oracle Fusion Middleware – This software controls the flow of information between the
database and applications, ensuring that different computer systems can work together, in the country’s poorest rural regions
security policies are enforced, and new applications can be easily deployed. The city of have buyers for their goods and money
Kingston upon Hull in the United Kingdom uses Oracle Fusion Middleware to integrate
for their families. The program, which
interactions with its 250,000 citizens and improve access to city services.
works to maximize milk production
Oracle Services – Oracle provides services to help our customers get the most from our in India’s most fertile regions and
software products, including 24/7 global technical support, consulting services to help
with implementation and upgrades, and Oracle University to assist with training. Oracle distribute dairy products to the city
Consulting helped Yonsei University—one of South Korea’s leading teaching and research centers with highest demand, has
institutions—improve access to Web-based services and internet research tools for its received worldwide recognition for its
45,000-student community.
efforts. It is part of a dairy project that
The Food and Agriculture Organization
of the United Nations calls “the central
event of twentieth-century dairying
in India.”

To improve the efficiency of

dairy operations and streamline
distribution to the five cities it serves,
the Mehsana District Cooperative
Milk Producers Union implemented
Oracle E-Business Suite 11i. Now,
information that was once exchanged
on paper or over unreliable phone
connections is sent over the internet.
As a result, the time it takes to process
a purchase order has been reduced—
from 20 days to 3 days.


 oracle
in action
Oracle Volunteers Rebuild a
School Devastated by the Tsunami
As the world watched in horror during
the days following the tsunami in South
Asia on December 26, 2004, people
everywhere thought: “What can I do to
help?” For Oracle employees living and
working near the devastated areas, as
Students joined Oracle volunteers to
well as those living half way around the
rebuild classrooms after the Ban Bang
world, the answer was simple enough.
Bane School was badly damaged by the
With Oracle’s help, the employees
tsunami of 2004.
organized funds and relief efforts within
hours of a disaster that had left more
than a million people homeless.
The donations helped fund initial relief
efforts by specially trained disaster relief
workers focused on providing critical
aid to survivors. In addition to monetary
contributions, Oracle employees in the
Asia Pacific region were able to volunteer
to help rebuild some of the more
devastated areas.
One in particular is the Ban Bang Bane
School in Thailand. The school was
severely damaged, and Oracle staff in
Thailand visited the Ranong Province
to help rebuild the school. Fifty-five
volunteers worked for several days
to rebuild the school, which opened

to 120 children and 20 teachers and
staff in the new school year. “We are glad
that Oracle selected Ban Bang Bane
School to repair after the tsunami,”
says Manut Chansakul, principal.
In March 2005, Oracle rebuilt two
teacher housing units on school grounds.
Most of the teachers are from other
provinces, and traveling to and from
the school is difficult. “Before the living
quarters were rebuilt, teachers had to
travel 15 kilometers between the school
and town each day,” Chansakul says.
“They are very appreciative and grateful to
the Oracle volunteers who dedicated their
time and efforts to help us out following
the disaster.” Volunteers’ efforts in March
made it possible for the school to open for
the second semester in May 2005.
“Oracle Thailand employees were
pleased we had the opportunity to help
reconstruct the school,” says Khun
Natasak Rodjanapiches, managing
director for Oracle in Thailand. “This
effort will help ensure a brighter future
for these students,” he said.

Think.com and WebPlay
Promote Cross-Cultural Learning
Imagine a place where thousands of
children can participate in an experience
that promotes creative and cross-cultural
collaboration and learning. Oracle’s
Think.com teamed with WebPlay to
create such a place, engaging students
with technology and drama.
The two programs are a natural
fit. Think.com, an online learning
community hosted by Oracle Education
Foundation, provides collaboration tools
that allow students and teachers to share
information within the protected site
and post their work for other students
to read and offer feedback. WebPlay,
another online education program,
enables primary school children
to create and produce plays while
collaborating with a professional theatre
company and students from partner
schools in different countries.
“We enable children from contrasting
communities to communicate,
collaborate, and create,” says Sydney
Thornbury, WebPlay’s executive
director. As part of WebPlay, students
use Think.com’s free, online educational
platform to share ideas, exchange
information, and develop plays while
building technology skills.
Last March, Think.com and WebPlay
welcomed more than 250 Los Angeles
students to the Skirball Cultural Center
for a live performance by the U.K.’s Hoi
Polloi Theatre Company. During the
three-day event, more than 500 third-,
fourth-, and fifth-grade students attended
a play and special workshops to learn
about drama and playwriting as part
of WebPlay’s new education initiative,
WebPlay L.A. Devised as a nine-month
project, WebPlay L.A. students first built
Web pages in Think.com and conducted
research with their partner schools
oracle
in action
to discover facts about one another’s
neighborhoods. They explored themes
such as where other students live and
what makes their hometowns special.
During the drama development phase,
students interacted with Hoi Polloi’s
actors, backstage teams, writers, and
Together, Think.com and WebPlay are
directors to learn how to develop plays
breaking down cultural and geographical
from page to stage. The students then
barriers between teachers and students.
attended a live performance at Skirball
Cultural Center, had lunch with their
partner class, and participated in a
workshop with the theatre company
and WebPlay staff.
“We enable children from
contrasting communities
to communicate,
“The main focus of the WebPlay collaborate, and create.”
program is on using technology
to further enhance the live theatre
experience for young audiences,”
says Thornbury. After seeing a live
performance, the students returned to
the classroom to create their own plays
set in their partner school. The plays
were performed, digitally videotaped,
and uploaded to Think.com.
“We chose Think.com because it is
a fantastic environment with tons of
potential for collaborative learning.
And it was so easy. None of us were
techies, so it was great that the system
could be learned quickly and easily by
all,” Thornbury says. “Oracle is really
providing access to technology for
schools—there are no barriers.”

 oracle
in action
Oracle Academy Supports Teachers
and Students Worldwide
What’s the best way to give today’s
teenagers a competitive edge in the
global marketplace? Offer them training
in the world’s quickly expanding
technology base. For the last six years,
the Oracle Academy has hosted an
annual event to help train secondary-
school teachers around the world.
Recently, the Academy brought that
Egyptian teachers joined counterparts from
expertise to Egyptian educators who,
around the world at the Oracle Academy in
along with their counterparts from
Los Angeles, California.
18 countries and 34 states, participated
in the weeklong event at University
of California, Los Angeles (UCLA).
The professional development forum
helps teachers to prepare their students
for future academic and business success.
“It’s been quite exciting
to see new opportunities
that have opened for my
students as a result of
their Oracle Academy
experiences.”
“Quality teacher training is critical to
help educators incorporate technology
into their broader curriculum,” says
Clare Dolan, vice president of Oracle
Academic Initiatives.
Prior to the professional forum, parti-
cipating teachers attend preliminary
training sessions consisting of online
classes, quizzes, weekly conference
calls, and ongoing e-mail dialogue with
Academy mentors. During the forum,
the teachers spend the week with Oracle
staff and Oracle University instructors.
The teachers then demonstrate their
readiness to teach the curriculum by
completing a project that challenges

them to apply their new technical skills,
as well as by passing an exit exam.
Once they’ve completed their training,
teachers go back to their home schools
and deliver the curriculum to their
students. So far, at least 360 Egyptian
students and 10,000 students from
other countries have benefited from
the program.
The Egyptian involvement is the result
of a joint initiative between the Oracle
Academy and Egypt’s Ministries of
Education (MOE) and Communications
and Information Technology (MCIT).
“The partnership demonstrates Oracle’s
deep commitment to the successful
development of IT in the region,”
says Atef Helmy, Oracle’s
managing director for Egypt.
This kind of training can have
an invaluable impact on the next
generation of business leaders.
After just two semesters of
study, Academy students gain
database design, SQL, and project
management skills that are
applicable to a variety of technical
jobs. For advanced students who
wish to build upon those skills, an
additional semester prepares them to
complete the Oracle Certified Associate
(OCA) 9i Developer certification—
providing a greater competitive edge
in today’s job market.
“It’s been quite exciting to see new
opportunities that have opened for
my students as a result of their Oracle
Academy experiences,” says Robin
Smith of Arnold R. Burton Technology
Center, Roanoke County, Virginia.“The
real-world technical skills they learn
boost their confidence and give them a
competitive edge for their future.”

Oracle’s ThinkQuest Promotes
a Student’s War on AIDS
When Ammu Irivinti accidentally
bumped her head and it bled, one
of her friends convinced her that
she had contracted AIDS. Imagine
Ammu’s relief to discover that she
had been misinformed.
The incident, which took place six
years ago, also made Ammu realize
that other kids might be as in the dark
as she was. So, using her skills and
interest in the online world, she created
a Web site whose purpose is to inform
other children about the realities of
“You can work with anyone regardless of
religion and race when you see that we are all
people going for the same thing.”
the disease and its devastating effects.
At 15, the young woman from New
Hampshire—who has helped raise
more than $85,000 for children and
young mothers with AIDS—was
invited to speak at the United Nations
as one of 50 students from around
the world to address issues of poverty
and disease.
Ammu’s initial online effort
grew into an award-winning
Web site that won first place
in the ThinkQuest student
competition—a program
sponsored by the Oracle
Education Foundation. She
viewed the competition as
a new way to make an impact
on the AIDS crisis and
educate other kids about
the history and current state
of the disease. “I thought
oracle
in action
that if people did something
constructive we could solve this
issue,” says Ammu. The Web site
gets 6,000 visits each month, an
encouraging sign. “It’s rewarding
to know that the effort is making
people understand AIDS better.”
Ammu created an international team
that worked together via e-mail and
online chats to assemble the Web ThinkQuest winner Ammu Irivinti
site. First she turned to her cousin, accepts her first-place award from
Kalanidheesh Medavaram, in India, who Oracle President Safra Catz.
took charge of the content research
and writing for the site. The rest of
the team comprised students who had
left comments in the forum on that
original educational AIDS Web site,
which she had created when she was
nine. “I enjoyed leading the team,
even though I had never done this
internationally,” she says. “The time
differences were definitely a major
barrier, but we managed with online
chat, e-mail, and an occasional
phone call.”
Overcoming cultural barriers
was a side benefit to the site
development. “They can
be overcome,” says Ammu.
“You can work with anyone
regardless of religion and
race when you see that we are
all people going for the same
thing. That was the most
valuable thing I learned.”


Children in Zagreb, Croatia, benefit from
an improved computer center, renovated
by local Oracle employees.

Co m m i t m e n t
Oracle will work in innovative ways to advance education programs
that prepare students for 21st century technology demands.
ORACLE
in the community
Oracle works actively to address
community needs and improve quality
of life in the communities in which
it does business. Preferring to solve
problems rather than manage their
consequences, Oracle and its employees
focus on bringing about positive
change in four key areas: education,
giving, community partnerships, and
volunteerism.
Oracle Education Initiatives
Oracle believes in the power of
education to create change. Oracle
invests in math, science, and technology
programs that target low-income
communities and encourage the gifted
innovators of tomorrow. In addition,
Oracle increases access to technology
by providing resources, training, and
curricula to academic institutions.
The ability to use technology to learn
and succeed in the twenty-first century
has become a new basic requirement
for all students. Oracle has created
a family of education programs that
leverages its core competencies in
information technology and the
internet. These include the following:
• Oracle Education Foundation –
A nonprofit funded by Oracle
working in partnership with schools,
governments, and other nonprofits
and NGOs to promote education
with technology through select
grants, research and evaluation,
and its ThinkQuest and Think.com
programs.
• ThinkQuest – An international
competition in which students and
teachers are challenged to create
educational Web sites and build
understanding across cultures.
• Think.com – A no-cost, advertising-
free, protected online environment
for schools worldwide that provides
a suite of tools for Web site publishing,
research, discussion, and project
collaboration.
• Oracle Academic Initiative –
A program in which Oracle provides
state-of-the-art software and
curricula for colleges and universities
and trains educators to teach
technical curriculum.

Oracle will use our resources to partner with organizations that strive
to enrich the quality of life in communities around the world.
• Oracle Academy – A partnership
with secondary schools that educates
students on the fundamentals of
database and Java technology, and
equips them with interviewing,
presentation, project management,
and collaboration skills.
• Workforce Development Program –
A program that addresses the need
for accessible and low-cost IT skills-
training in local communities, with
the goal of preparing students for
Oracle certification testing and career
advancement opportunities.
Oracle Giving
Oracle Giving is committed to being
a vital, contributing partner to the
world community, building long-
term alliances with nonpolitical,
nonreligious, nonprofit organizations
to make a substantial impact on
education, the environment, and
medical research.
Co m m i t m e n t
Since its inception, Oracle Giving has
supported projects with measurable
outcomes in the areas of primary
or secondary math, science, and
technology education; environmental
and endangered animal protection;
and medical research for AIDS, cancer,
and neuroscience. In addition, Oracle
encourages employee community
involvement through the Oracle
Matching Gifts Program, in which
the company matches donations made
by employees to eligible nonprofit
organizations.
Oracle Giving works closely with
partners who share our vision: to seek
genuine intersections between the
needs of society and the goals of our
company, and make investments that
benefit both. Integral to this vision is a
commitment to support communities
around the world where Oracle
has employees. By combining our
resources, strengths, and technology
with those of our partners, we can
make a visible difference.
Students show some school pride
at the Oracle-sponsored Rand
Afrikaans University School of Maths
in Johannesburg, South Africa.
RAU/Oracle School of Maths
In association with RAU Univer-
sity in Johannesburg, South Africa,
Oracle supports the development of
mathematics in Soweto’s second-
ary schools. In the Saturday School
program, conducted year-round with
more than 400 students from Grades
8 through 12, students are tutored in
mathematics by RAU lecturers and
senior math students who also come
from disadvantaged backgrounds. The
Winter School, a six-day intensive
program for Grade 12 students, assists
students with final-exam preparation
to improve their exam marks. Both pro-
grams provide instruction, additional
learning aids, lunch, and refreshments.

 Oracle in the community

Oracle Volunteers more than 2,400 volunteers in 28

Established in 1991, Oracle Volunteers
provides opportunities for Oracle
employees to actively address social
needs and make a measurable,
positive impact in the community.
Oracle volunteers lend their time and
talents to not only serve underserved
Indonesian children get a lesson from
populations, but also to enrich the
an Oracle employee during 2004 Oracle
Global Volunteer Days.
quality of life in the communities
where we live and work. Volunteers
teach basic safety and life skills lessons
to the blind, protect native habitats
for endangered wildlife, tutor and
mentor disadvantaged youth, provide
companionship for lonely and isolated
elders, and build playgrounds and
housing for low-income families to
revitalize neighborhoods in transition.
Oracle Volunteers engages employees
in a variety of volunteer opportunities
throughout the San Francisco Bay
Area and worldwide. This year,
Oracle employees at the company’s
headquarters participated in over 85
projects, logging over 3,400 volunteer
hours to support Bay Area nonprofit
organizations. During Oracle Global
Volunteer Days, a company-wide
service initiative to further Oracle’s
commitment to social responsibility,
countries contributed more than
14,700 volunteer hours to benefit local
communities around the world.
Oracle Community Partners
Oracle is committed to the local
communities in which its employees
live and work. To complement Oracle
Giving and Oracle Volunteers,
Oracle created Community Partners
to establish a local presence in each
major U.S. community with an Oracle
facility. This program gives Oracle
the opportunity to interact with local
government agencies and community
planning commissions, participate
in local chambers of commerce and
community events, promote health
and safety efforts such as supporting
local firefighters and police, and share
company facilities such as conference
rooms with local nonprofit agencies.

10
 In Italy, Oracle staffers put their best
foot forward by working with a local
youth soccer team.

[ FACTS ]

• Oracle Japan supported 127 nonprofit

organizations in FY05.

• ThinkQuest was named “Best Internet

Site for Kids” by Common Sense Media.
Oracle Latin America e-Talent
• Since October 2003, 1,100 teams made Program
up of 4,750 international students from
42 countries have submitted entries to
the ThinkQuest competition.
Oracle e-Talent is a student program
developed by Oracle Latin America,
• Think.com has 143,210 active in which students with business and
users in 3,140 schools in 18 engineering backgrounds from lead-
countries, with an FY05 grant
ing Latin American universities are
value of US$1.4 million.
recruited to work for Oracle during
• From June 2003 to May 2005, their last year of study. Students come
the Oracle Education Foundation
Grants program has delivered from 10 Latin American countries
US$1.3 million in cash and and receive technical training, project
hardware, plus US$600,000 management and presentation train-
in services.
ing, weekly meetings with an Oracle
technical coach, regular performance
• The Oracle Academic Initiative currently evaluations, and networking oppor-
serves 331,558 students in 1,949 tunities with senior executives. Once
institutions in 72 countries—with students graduate they may be invited
growth in 2003 of 70 percent in Asia
Pacific alone. to work full time with Oracle or one of
its business partners.

11
 Oracle in the community
Commitment to Accessibility
Successful access to information by
people with disabilities is known as
“accessibility.” Accessibility is a
significant issue for a growing user
population.
Historically, users with disabilities
have been provided customized
solutions, but given state-of-the-art
e-commerce applications with built-
in color keys, drop-down menus,
graphical user interfaces that require
a mouse, and plug-ins that can’t be
translated by screen readers, custom
solutions for individual users in an
enterprise are no longer practical.
Accessibility must now be integral to
the basic design so that enterprise-
wide solutions can accommodate the
changing needs of users.
Worldwide standards that define
accessibility are based on Section 508
of the Rehabilitation Act (U.S.) and
the World Wide Web Consortium’s
Web Accessibility Initiative (WAI).
Oracle began releasing products coded
to Section 508 standards in 2001.
12
Additionally, Oracle documentation
is available in a variety of formats,
including HTML, plain text, and PDF.
Work began in 2000 to ensure that
documentation would be available in
accessible format, in accordance with
applicable Section 508 standards.
However, in live technical
implementations, Oracle’s products
must often interact with technology
from other vendors—technology
over which Oracle exerts no control.
Accessibility may be a universal goal,
but it is a shared responsibility across
the hardware, software, and assistive
technology industries. Oracle’s goal is
to ensure that products and services are
accessible to the disabled community
with excellent usability. Industry
standards will continue to evolve over
time, and Oracle is actively engaged
with other market-leading technology
vendors in addressing technical
obstacles.
 Oracle volunteers have a
close relationship with the Boys
and Girls Club of the Peninsula,
where employees spend their
[ FACTS ]
off-hours working and playing
• Using the Oracle Think.com learning environment,
with local youth.
more than 500 students in Northern Ireland and
South Africa discussed the book, The Cinnamon
Tree—about an African girl who loses her leg in a
land mine—online with the book’s author and with
one another.

• Oracle Giving donated US$40,000 to the

Buck Institute to support the next stage of
Dr. Christopher Benz’s studies involving the
review and analysis of Marin County, California,
breast-cancer cases, with a view to identifying
underlying causes.

• Oracle Giving donated US$100,000 to

the Ocean Conservancy, Inc. in support
of its continued partnership to support
the annual International Coastal
Clean-Up Day.

• Oracle Education Initiatives operates in

80 countries around the world, in over
4,100 schools, with more than 428,000
participants—and represents a grant
value of over US$2.06 billion.

• The Oracle Academy has trained

584 teachers and 13,125 students
worldwide since 2001 and is currently
active in 525 institutions.

• During Global Volunteer Days, Oracle

volunteers in Santiago, Chile, planted over
300 trees in Bosque Santiago, a natural
preserve in Chile.

13
 ORACLE’S
GLOBAL WORKFORCE
In an increasingly global economy,
it is not surprising that a company
that serves customers around the
world would need staff to support
those customers—wherever they are.
Oracle uses our resources to develop
and deliver quality products and
services to the global market. Oracle
employs people around the world in
global development, sales, and services
in order to meet the needs of our
customers. Using a geographically
dispersed workforce allows Oracle and
other global companies to continue
to drive innovation, improve the
economic status of workers around the
world, and build the global economy.
14
Additionally, customers running
Oracle-based enterprise systems
require access to technical support 24
hours a day, 7 days a week, 365 days a
year—often delivered in the customer’s
native language. Employing a global
workforce allows Oracle to address
these demands and ensure that our
clients receive the level of attention
they require to keep their mission-
critical computing systems online.
The number of employees by region
and the revenue generated in those
regions remain in balance.
 Co m m i t m e n t

Oracle seeks to build an inclusive workforce and work environment. We make

every effort to attract, invest in, and develop the talents of a diverse group of
people who reflect the society and community in which we live. We welcome
and support people of all races, ethnicities, cultures, and religions, and seek
to foster teamwork and effective partnerships among our employees.

Diversity conceptions of diversity, as they

Oracle’s diversity vision starts with
cultivating an environment that is
inclusive of all employees. Individual
differences present us with opportunities
to examine business issues from a
variety of perspectives. Incorporating
these different viewpoints gives us
greater agility and creativity. The result
is a workforce unified by common
goals and strengthened by uncommon
outlooks. Oracle believes that such an
environment is necessary to effectively
compete on a global scale. Valuing
diversity by using effective communication
skills and demonstrating mutual
respect is simply good business. At
Oracle, we are dedicated to realizing
our diversity vision in our daily
business practices worldwide.
Diversity has enriched the business
community in every quarter of the
manifest in law and in business. Our
vision for diversity incorporates and U.S. MINORITY EMPLOYEES vs. TOTAL U.S.
WORKFORCE:
provides for all such differences, in
the spirit of diversity itself. Minority 39%
An example of our commitment to
building a diversified workforce is
our multi-year education grant to the
United Negro College Fund (UNCF).
This grant provides cash, curriculum,
teacher training, certification, and
technology resources to the UNCF U.S. FEMALE EMPLOYEES vs. TOTAL U.S.
WORKFORCE
and its 39 member institutions.
The grant is a response to the Women 32%
Technology Enhancement Capital
Campaign, launched by the UNCF
to give historically black colleges
and universities access to advanced
teaching and learning methods, and
cutting-edge technology within degree
programs. Oracle’s grant also funds a
scholarship and internship program U.S. MINORITY and Female Managers
that helps students gain actual work vs. TOTAL U.S. management

globe, promoting the underlying experience across multiple disciplines.

themes of tolerance and respect. Women and Minority Management
However, the concept of diversity is
34%
not uniform. Oracle acknowledges
and embraces the cultural differences
that shape the varying international

40% 26%

“Minority” is defined as employee’s

self-identified race or ethnicity.

15
 oracle’s gLOBAL WORKFORCE
Oracle at Work
Oracle provides an official Code of
Ethics and Business Conduct to its
employees worldwide for their guidance
in addressing the legal and ethical issues
they encounter when conducting Oracle
business. Although employment by
Oracle is subject to terms and conditions
established by local organizations,
employees are required to abide by
the standards set forth in this Code.
These standards cannot anticipate
every situation that may pose an
ethical or moral issue, but Oracle
expects each employee to exercise
sound judgment when evaluating
an issue of conduct. When in doubt,
employees are encouraged to seek
counseling prior to taking any action
that may compromise either personal
ethical standards or those of Oracle.
16
To support employees in the pursuit of
superior business ethics and conduct,
Oracle has designed global courses, based
on the Code, which new employees are
required to take within the first 30 days
of employment. Both the Code and
the courses have been translated into
many languages. These courses include
the following:
• Ethics and Business Conduct –
A required online self-study course
that provides employees with
information to aid them in
understanding and abiding by the
Code. It is offered in eight languages.
• Ethics and Business Conduct
Supplemental – A required course
for employees involved with
government and higher education.
• Sexual Harassment Awareness –
An online self-study course that
provides employees with information
about identifying, preventing, and
reporting sexual harassment in the
workplace. This course is offered in
13 languages.
• Data Privacy Awareness – A required
eSeminar course that provides
employees with information about
the legislation and principles of
data protection, including employee
obligations related to data privacy.
Oracle also maintains a Compliance
and Ethics Helpline and Web site to
assist employees who have witnessed
or suspect a violation of Oracle’s Code
of Ethics and Business Conduct and
allow them to report the situation
confidentially and anonymously.
Deviations from our business conduct
standards are not tolerated.
Disciplinary action is taken against
any individual who is found to have
authorized, condoned, participated
in, or concealed actions that are in
violation of these standards; against
any manager who disregards or
approves a violation, or who, through
lack of diligence in supervision,
fails to prevent or report violations;
and against managers who retaliate,
directly or indirectly, or encourage
others to retaliate against an employee
who reports a potential violation of
these standards.
17
 oracle’s gLOBAL WORKFORCE
Employee Training and Development
Oracle provides a variety of training
programs designed to support
employee knowledge and skills
development. These programs are
designed to help our workforce
perform productively and effectively
in current job roles as well as prepare
employees for future challenges. On
average, employees complete at least
one week of formal internal training
each year, and technical and sales
employees typically receive up to four
weeks of formal training each year.
18
Oracle offers a variety of technical,
professional, and personal development
training through a number of
learning media. Oracle University’s
global internal training Web site
provides online Oracle technology
training courses. Courses are free for
employees and are offered both as live
and archived presentations. The site
also provides on-demand access to
Oracle’s Compliance Program courses,
educating employees about Oracle
corporate policies and how to report
conduct that deviates from Oracle’s
policy standards.
 Oracle volunteers spend
the day with children from the
Forum for Street Children in
Hyderabad, India.
The standards set forth in the Oracle Code of Ethics and Business Conduct are
governed by the following business values:

Integrity — Oracle employees demonstrate honesty and sound ethical behavior in all
business transactions and personal integrity in all dealings with others.

Mutual Respect — Oracle employees consistently treat individuals with respect

and dignity. oracle supports global employees

Teamwork — Oracle employees work together as a team for the collective interests
– Global HR services firm Hewitt Associates named
of Oracle.
Oracle India one of the ”25 Best Employers“ in its
Communication — Oracle employees share information widely and effectively with Best Employer Survey 2004.
one another, except when confidentiality is required.
– A DataQuest survey placed Oracle in its
Innovation — Oracle employees seek innovative and creative approaches to
problem solving. “Top 10 Employers” for 2004.

Customer Satisfaction — Oracle employees consistently treat customer satisfaction – Oracle’s African Operations region was named the
as a top priority. ”2005 Employer of the Year“ by Africa Investor.

Quality — Oracle employees make excellence and quality a part of their day-to-day – CCTV, China’s national television network, recog-
work processes and seek continuous improvement in all that they do.
nized Oracle China as one of the country’s
Fairness — Oracle employees are committed to dealing fairly with customers, suppliers, ”Top 10 Employers“ in 2005.
and one another.

Compliance — Oracle employees comply with all laws and regulations that govern
Oracle’s business.
Oracle Revenue vs. Workforce by Region

Business Conduct — Oracle employees observe the standards that have been established Region % of Revenue % of Workforce
by Oracle and act ethically in their approach to business decisions.
Americas 48.84% 49.99%
Oracle’s Code of Ethics and Business Conduct can be found at
oracle.com/corporate/investor_relations/codeofethics.pdf Europe, 36.37% 24.89%
Middle East,
Africa

Asia Pacific 14.79% 25.12%

19
 ORACLE and privacy
In today’s digital age, where information
is the new currency, the protection of
personal data and assurance of identity
on the internet are important elements
of corporate policy. These protections
need to be deployed in the policies and
practices of the company as well as in
the technologies that support them.
Oracle has implemented corporate
privacy polices and practices to protect
the personal information of its customers
and employees. As part of the company’s
international policy advocacy, we are
active participants in intergovernmental
initiatives to improve the state of privacy
protection and develop workable policy
solutions and best practices. There is an
emerging understanding that workable
solutions need to provide effective
privacy protections to consumers and
citizens while enabling the necessary
and responsible information flows that
are the basis of today’s digital economy.
We are working with other industry
participants as well as governments
and nongovernmental organizations
to develop solutions that help us reach
both of these objectives.
20
Oracle technology also plays a role in
privacy protection. Privacy, by its very
nature, is subjective. Our individual
sensitivities about how our information
is treated—for what it is used and with
whom it is shared—are not uniform.
Furthermore, the need to use information
varies across business process and
business types. A doctor will have
more personal information that will
be used, and possibly shared with
other medical practitioners, than will
an auto mechanic. The nature of the
job and the information processes
associated with that job dictate what
is reasonable and necessary. In light of
this need for tailoring technology to
support a variety of business practices
and information preferences, Oracle
provides tools that our customers can
configure to help support their own
privacy policies and practices.
Because both privacy and security
are focused on access control and
protection of systems and information,
technology solutions for each are
closely related and often depend upon
similar technological functions. Thus,
many of Oracle’s privacy tools and
functions are derived from some of the
security functionality that has been
designed into the products. Although
security and privacy tools share similar
technological roots, they are separate
priorities that must be considered
when configuring software functions,
permissions, and roles. In order
to help our customers address
these issues, we have begun to
develop guidance documents to
help customers understand which
parts of our technology may have
privacy applications. We highlight
considerations in configuration
and application, but we leave it to
customers to make the final decisions,
because those decisions must be rooted
in intimate knowledge of business
priorities and practices.
21
 governance
The Oracle group of companies
consists of 183 companies in 79
countries. As a U.S.-based, publicly
traded corporation, Oracle’s goal is
to comply with the laws of the United
States and the laws of each country
in which it conducts business.
Oracle provides detailed public
accounting and analyst information.
We also provide information about
Oracle’s values and vision; the Board
of Directors and Board Committees;
Oracle executives; and Oracle’s business
ethics for employees, partners, and
suppliers.
22
Sarbanes-Oxley Regulations
In the United States, the Sarbanes-
Oxley Act formalizes corporate
accountability for financial reporting
and disclosure of internal business
controls and processes. Enacted in
2002, this regulation fundamentally
changes the way U.S.-based businesses
report financial information and
the way that boards and executives
discharge fiduciary responsibility.
As a U.S.-based corporation, Oracle
believes we are in compliance with
Sarbanes-Oxley regulations. Additionally,
Oracle creates products and solutions
designed to help other companies
comply with the letter and spirit of
Sarbanes-Oxley by increasing the control
and efficiency our customers have over
their critical business information and
improving their financial transparency.
Oracle’s Corporate Governance
Principles
Oracle’s Board of Directors has
developed corporate governance
practices to fulfill its responsibilities
to Oracle shareholders. As part of these
practices, the Board adopted a set of
corporate governance guidelines to
help ensure that it has the necessary
authority and procedures in place to
oversee the work of management and
to exercise independence in evaluating
Oracle’s business operations. These
guidelines include policies regarding:
• Director Qualifications –
A Nomination and Governance
Committee assesses potential Board
members based on their independence,
character, and acumen.
• Director Responsibilities – The
basic responsibility of the directors
is to exercise their business judgment
and act in a manner they believe is in
the best interest of the company and its
shareholders. Board members attend
the Annual Meeting of Shareholders,
Board meetings, and meetings of
committees on which they serve.
• Director Compensation – The
Compensation Committee determines
the form and amount of director
compensation annually, in accordance
with the policies and principles set
forth in its charter.
• Chief Executive Officer Evaluation –
The Compensation Committee
conducts an annual review of the CEO’s
performance and compensation.
• Board Evaluation – The Board, led
by the Nomination and Governance
Committee, periodically conducts a
self-evaluation to determine whether
the Board and its committees are
functioning effectively.
Oracle’s Corporate Governance
Guidelines can be found at
oracle.com/corporate/investor_
relations/corpgov.pdf
23
 governance
Conflict of Interest
Oracle maintains a Conflict of
Interest policy to help senior officers
and directors identify and properly
address potential conflicts of interest
involving the company. Conflicts
include situations when a director or
senior officer has a personal financial
interest in a transaction entered into by
Oracle or by an entity doing business
with Oracle, or situations when they
intend to exploit an opportunity
that rightfully belongs to Oracle.
This policy includes the following
procedures:
• Duty to Disclose – Directors or
senior officers must promptly
disclose any actual or possible
conflict of interest.
• Determining Whether a Conflict
Exists – After disclosure of all
material facts related to the potential
conflict of interest, the appropriate
individual or committee will decide
whether or not a conflict exists.
24
• Investments by Senior Officers –
Although senior officers of the
company may invest in third parties
as part of their personal investment
strategy, they may be in violation of
this policy if they invest in any of
Oracle’s portfolio of companies or in
entities that materially compete with
any part of Oracle’s business.
• Service on Boards of Directors –
No senior officer may serve on
the board of directors or advisory
board of any company, other
than a nonprofit entity, without
the approval of the CEO and the
Executive Management Committee.
The Independent Committee must
approve an appointment to the
board of a public company.
Oracle’s Conflict of Interest policy
can be found at oracle.com/corporate/
investor_relations/coip.pdf
 Oracle Board of Directors

Jeffrey Berg
Chairman and Chief Executive Officer of International Creative Management, Inc.

H. Raymond Bingham
Former Executive Chairman of Cadence Design Systems, Inc.

Dr. Michael J. Boskin

Professor of Economics at Stanford University

Safra A. Catz
President and Chief Financial Officer, Oracle

Lawrence J. Ellison
Chief Executive Officer, Oracle

Hector Garcia-Molina
Professor of Computer Science/Electrical Engineering at Stanford University

Jeffrey O. Henley
Chairman, Oracle

Jack F. Kemp
Chairman of Kemp Partners and former member of the U.S. Congress

Donald L. Lucas
Venture Capitalist

Charles E. Phillips, Jr.
President, Oracle

Naomi O. Seligman
Senior Partner at Ostriker von Simson

25
 Co m m i t m e n t
Oracle will devise target metrics for reporting and improving greenhouse
gas emissions.
ORACLE
and the environment
In partnership with government
and voluntary organizations, Oracle
has become a leader in the software
industry on energy and environmental
issues. As a company, Oracle has always
Clearing debris from the Estonian coast
promoted “green” practices. Among
gives these Oracle employees a chance
other conservation activities, Oracle
to enjoy the outdoors.
has implemented programs that enable
its facilities and employees to reduce
the use of natural resources, minimize
and recycle waste, and emphasize
sustainable resources.
Eliminating Product Packaging
Oracle has been able to reduce the
environmental impact of internal
manufacturing and distribution
operations by consolidating
warehouse facilities and moving to
electronic delivery of software and
documentation—dramatically reducing
the need for physical packaging and
printed documentation. To further
reduce waste, Oracle continually makes
packaging improvements and closely
monitors inventory in order to avoid
having to “scrap” printed materials.
Also, wherever possible, the company
advocates “print on demand.”
26
Oracle Global Environment Forum
In an ongoing effort to improve
Oracle’s environmental and energy-
conservation initiatives, Oracle Global
Real Estate and Facilities initiated a
Global Environment Forum in 2004.
Composed of Oracle facility and energy
managers from around the world,
members meet periodically to review
energy and environmental practices;
exchange information on local practices,
regulations, and trends; discuss best
practices; and develop internal
guidelines and commitments around
the world.
Transportation Alternatives
Oracle is committed to decreasing the
number of cars on the road and has
established commute alternatives and
assistance programs. The company not
only sponsors vanpools and shuttles to
and from local train stations, but also
provides bike lockers, priority carpool
parking, and discounted public-transit
tickets for employees who commute.
In addition, Oracle was a major
supporter of the Measure A half-
cent sales tax approved in November
2004 by voters in San Mateo County,
California. This measure will raise
US$1.5 billion to fund public
transportation initiatives, improve
traffic flow, and reduce highway
congestion.
Recycling Programs
Almost since its founding, Oracle
has had a formal program to recycle
the waste byproducts found in most
office environments: computers, paper,
CDs, bottles, cans, cardboard, toner
cartridges, batteries, and more. Bins
are labeled and placed in convenient
locations to encourage recycling, and
it is truly a way of life for Oracle
employees.
As we strive to deepen our
environmental commitment, we Oracle and the environment
undertake more aggressive initiatives
such as an organic-waste recycling
program at our HQ facilities. We In 2005, Oracle was No. 2 on the U.S.
intend to reproduce this pilot program Environmental Protection Agency’s Top
in regions around the world. 20 Best Workplaces for Commuters.
Monitoring Greenhouse
Gas Emissions
Oracle was the first software
company to volunteer for the U.S.
Environmental Protection Agency’s
(EPA) Climate Leaders program. This
industry/government partnership
requires companies to develop long-
term, comprehensive climate-change
strategies; set greenhouse gas (GHG)
emissions-reduction goals; inventory
their emissions to measure progress;
and monitor and report progress to the
EPA as climate-change policy continues
to unfold. Oracle will achieve our
reduction goals almost entirely
through more efficient energy use.
27
 Oracle and the environment

Oracle is also a founding member

of the Sustainable Silicon Valley
Initiative, an organization whose
members seek to reduce greenhouse gas
emissions to the levels recommended
by the Kyoto Protocol.

Oracle’s voluntary commitment to

In Lebanon, Oracle employees work to
improve the health of local forests.
reduce greenhouse gas emissions
extends well beyond common practice
in its industry, and the company will
continue to explore ways to reduce its
impact on the environment.

28
 Oracle employees collect trash at
San Francisco’s Ocean Beach for
Oracle Global Volunteer Days.

O r a c l e U . K . ’ s IS O 1 4 0 0 1 C e r t i f i c a t i o n

Oracle’s environmental practices in the U.K. are a model for Oracle offices around the
world. Oracle U.K. implemented an Environment Management System in March 2004
and became ISO 14001-certified in June 2004. The ISO (International Organization for
Standardization) 14001 certification addresses environmental management—what
an organization does to minimize the potentially harmful environmental effects
caused by its activities. Initiatives established by the U.K. office include measures to
reduce the environmental effects from transportation, ozone-depleting refrigerants,
and hazardous waste. In addition, Oracle U.K. has committed to reduce electricity,
gas, and water use over two years. Oracle facilities around the world are adopting
similar programs and practices.

[ FACTS ]

• By centralizing the company’s distribution systems to a few regional centers—

eliminating 24 distribution operations—and by implementing electronic distribution
as the standard by which customers receive both product and documentation,
Oracle has significantly reduced its consumption of paper, cardboard, and other natural
resources. The company has also minimized the amount of resources required to
transport product to users around the world.

• After moving to electronic models of documentation distribution in 1998, Oracle has

reduced the amount of printed documentation it ships by more than 96 percent.

29
 Co m m i t m e n t
Oracle must extend energy-saving efforts to all regions so that the same
energy-performance criteria apply to all Oracle facilities.
ORACLE
and energy management
Oracle is working to decrease its
environmental impact by reducing
the amount of energy it uses to heat,
cool, light, and maintain its corporate
offices. In addition to adopting simple
conservation measures such as turning
off monitors overnight, reducing
lighting in hallways and stairwells,
and replacing incandescent lighting
with fluorescent lights, Oracle also
incorporates cutting-edge energy-
saving features in the design and
construction of new facilities.
Using Renewable Power
Oracle recognizes the importance
of using renewable sources of energy.
As part of the U.S. Environmental
Protection Agency’s (EPA) Green
Power Partnership Program, Oracle
pledged to purchase power from
renewable sources such as wind, solar,
and geothermal for its Austin, Texas,
data center. Because Oracle committed
to purchasing more than 10 percent
of its power for the data center from
renewable sources—far more than the
minimum 3 percent required to be a
30
certified Green Power partner—the
EPA has honored it with membership
in the Green Power Leadership Club.
The Austin data center was designed
to include modern energy-saving
features such as an airflow management
system that adjusts airflow according
to the number of servers running.
This allows center managers to use the
minimum amount of power necessary
for maintaining suitable conditions for
the equipment.
Rising to the Challenge
Because energy management is a
global issue, Oracle’s conservation
efforts extend across all regions.
During the California energy crisis
of 2000–2001, for example, Oracle
implemented stringent conservation
and efficiency measures. As a result,
the company was able to cut
energy usage at its Redwood Shores
headquarters by 10.5 percent in
2001—and has continued to achieve
savings of 9.3 percent, 11.5 percent,
and 12.4 percent in 2002, 2003,
and 2004, respectively.
 [ FACTS ]

• From 2000 to 2003, the average monthly use of electricity by each Oracle employee at
headquarters decreased by 20 percent. Alternatively, measured on a per-square-foot
basis, the reduction for that period was 10 percent.

• During power emergencies, Oracle is now capable of reducing real-time energy use at
company headquarters by up to 18 percent. Data Center

• Conservation pays—in more than one sense. Oracle’s energy-efficiency measures not
only benefit the community and the environment, but also allowed the company to
Because Oracle committed to purchasing
save about US$2.5 million from 2001 to 2003.
more than 10 percent of its power for
the Austin, Texas, data center from
renewable sources—far more than
the minimum 3 percent required to be
a certified Green Power partner—the
The Natural Resources Defense The company has also hired a Director EPA has honored it with membership in
Council (NRDC), in a study of how of Energy to oversee its ongoing energy the Green Power Leadership Club.
California companies responded to the management efforts. This reflects
statewide energy crisis of 2000–2001, Oracle’s commitment to investigating
cited Oracle for its efforts to reduce and implementing creative solutions to
energy demand through facilities the global energy challenge.
improvements and policy changes.
.
Oracle has also equipped its
headquarters facilities to reduce
peak-time power demand by up
to 18 percent during power
emergencies. In this way, Oracle
is attempting to do its part to help
the community avoid rolling
power outages.

31
 Q+A
Oracle President Safra Catz

Q: Why is Oracle producing this report now?

A: Oracle has a long history of doing good work in the communities it serves
around the world, but we haven’t talked about it very much. While this
report is not a comprehensive listing of our contributions to the community,
we hope the efforts we’ve highlighted will provide a sense of what we do
and encourage even more people to get involved.

Q: How does this report intersect with what is known as

Corporate Social Responsibility?
A: There has been a growing interest in corporate responsibility and citizenship
issues in recent years, generally referred to as Corporate Social Responsibility
(CSR). However, CSR has traditionally focused on issues—such as downstream
labor conditions in the supply chain or waste disposal from heavy manufacturers
—that the enterprise software and services industry doesn’t really face. Yet
Oracle does face a number of challenges—such as workforce preparation,
security, privacy—and must consider the needs of our customers, employees,
and host communities.

What you will find here is a report that reflects the issues of the enterprise
software industry as opposed to initiatives you might find in a report from
a consumer brand or a manufacturing enterprise. Customers, employees,
partners, shareholders, and community representatives are increasingly asking
for this type of information. We already have the programs in place—so we’re
now making the information more accessible.

32
Q: Is a company’s approach to corporate citizenship at odds
with its financial success?
A: Absolutely not. Being a responsible corporate citizen does not mean losing
focus on the interests of our shareholders. It means finding intersections between
the needs of our communities and the goals of our company and making
investments that benefit both. It also means using our technology to advance
interests in the community.

For example, Oracle’s Academic Initiative has provided technical training in

72 countries around the world—a US$1.3 billion investment in the future
prospects of more than 300,000 students. This program not only lays the
groundwork for many successful careers, but it helps us expand the pool of
talent available to support Oracle solutions for our customers. It’s a great
example of how good social investment makes good business sense.

We’ve made similar investments in our environmental surroundings. We’ve

invested in new equipment and changed our business practices to encourage
the efficient, environmentally sound use of energy and resources. As a result,
we’ve reduced our energy usage at Oracle headquarters for each of the past
three years. We’re also using more than 10 percent renewable energy to power
our main data center. We earned back our investment in equipment upgrades
in eight months and are now able to reduce our real-time energy use by up to
18 percent in case of power emergencies.

Our success is magnified by a good relationship with our neighbors—the

customers, partners, and residents of the cities where we operate. We don’t shy
away from supporting the issues that are important to our communities.

33
Oracle Corporation

Worldwide Headquarters
500 Oracle Parkway
Redwood Shores,
CA 94065
U.S.A.

Worldwide Inquiries
Phone
+1.650.506.7000
1.800.ORACLE1

Fax
+1.650.506.7200

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